Innovators – your business plan viability

The information and supporting evidence that you provide will show if your plan is practical. You will need to show that your business plan is practical in financial terms and the evidence you provide needs to support this. Here are some examples of the types of supporting evidence that we would need:

in cases where the amount of third party investment is significant (greater than £250,000 in the first year), we would normally expect to see two or more financial references; or in cases where third party investment is less than £250,000 in the first year, we would normally expect to see at least one financial reference; or in cases where there is limited or no third party finance at the date of establishment (for example if you are planning to provide start up and other early stage finance from personal or family funds) you should provide evidence of this and of your plans or tentative arrangements to attract the required third party finance as your business develops.

Financial references serve two purposes, they confirm the source of your funding and provide an objective assessment of your business proposals. A financial reference is a document of support from a recognised financial institution confirming your financial status and the details of any third party investments in your proposed business. Details of the type of evidence you will need to demonstrate your proposals are in the table below. If your referee is from overseas they must be familiar with the United Kingdom business environment. It is very important to your application to have good references that support your application, if there are exceptional circumstances where you are unable to supply these you need to explain this in your application. If you have applied for a government grant/loan in connection with your business proposal you should include this information in your application. Management plan You should show what your plans are for forming a management team to run your business with you. If you already know the people you wish to recruit, then you may provide details. Otherwise you should describe what skills or experience you will seek and how you intend to recruit the right people. If you are in contact with any recruitment agencies you should provide details. If you do not plan on recruitment a management team you should explain how you are going to manage your business. Details of the type of evidence you will need to demonstrate this are in the table below.

Requirement

Financial viability.

Information you may include in the business plan Cash flow forecast, with supporting assumptions.

Supporting evidence you may provide References from actual or intended financiers or other recognised third party finance providers. Accreditation of financial projections by recognised financial institution/firm of accountants. Details of sources of personal funds, financial guarantees, or other collateral (if applicable).

Forecast profit and loss account.

Assessment of main sources of risk, together with supporting sensitivity analysis. Description of actual or intended sources of funds. Description of intended financing structure (debt, equity etc). Description of main technical and/or scientific elements, and their application.

Technical viability.

Specification of proposed research and development activity.

Technical reference. A document explaining the application and the potential benefits it will bring to the United Kingdom, from an individual or institution with knowledge of the technical approach you intend to employ in the operation of your business. Technical/scientific documentation such as relevant research articles, technical manuals and performance data.

Commercial viability.

Assessment of risk factors as appropriate. Marketing plan which includes product/market analysis, descriptions of main competitors, pricing strategy, intended customers and

Commercial reference. A document of support from an individual/institution with knowledge, and usually experience, of the

project market share, how the product will be promoted and distributed, consistent with financial projections.

Shareholding.

Legal structure of company.

technical approach you intend to employ in the operation of your business, explaining the potential benefits it will bring to the United Kingdom. Evidence of market research or previous experience in this market. Copies of correspondence with potential customers, agents and distributors. Evidence of your 5% share-holding in the United Kingdom registered company.

Description of principal shareholders. Directors relationship between company and any established United Kingdom or overseas companies.